Case Study: A Merger Success Story from Southwestern Ontario
For any institution, embarking on a merger can be a daunting task, laden with uncertainties and potential pitfalls. In a recent merger experience in Southwestern Ontario, the journey was successfully navigated, which was a testament to strategic thinking, transparent communication, and adept execution.
Here's a look at Sense and Nous’ unique approach to navigating the merger process, and the valuable lessons learned along the way:
First Stage - The Starting Line: Feasibility Assessment
Venturing into any merger begins with a critical question: is the merger feasible?
This simple, foundational query can bring to light potential red flags, differences between organizations that will need to be reconciled, and significant impacts on time, resources, and costs. The initial phase sets the stage for a meticulous exploration of the merger's viability.
Step 1 - Kick-Off: The kick-off meeting is a crucial first step in our approach. Following the kick-off, we create a tailored communication plan, which serves as the foundation for decision-making at both the executive and governance levels. The plan is designed with transparency and change management (in case the merger goes through) in mind, and outlines the merger process from beginning to end. This alleviates the general fear of uncertainties that can cloud the determination of potential red flags, as well both parties’ roles and responsibilities.
Step 2 - Consultation: Once an initial approach and communications plan has been formulated, engaging with executives in consultative sessions is a critical next step for understanding key concerns, unique programs and community needs, and organizational structures that require early consideration in the process. Through our tailored and collaborative approach, we ensure that key principles are decided on ahead of time to guide the process. Not everyone has experienced mergers before, so we take this opportunity to shed light on how a merger can be implemented, should the decision be to proceed; this can address much of the general fear of uncertainties.
Step 3 - Analysis and Findings: The third step in the feasibility process is to gather the right information to enable an informed decision on whether or not to proceed with the merger. This involves dividing the information into different work streams to address the multifaceted nature of a merger. Typically, the five workstreams are:
Infrastructure
Human Resources
Finance
Programs
Governance/Legal
What makes this phase essential is its dedication to maintaining positive relationships, irrespective of the merger's outcome. This is accomplished through fostering collegial discussions and adopting a change readiness approach. Identifying and confronting fears from day one creates an environment for transparent conversations, ensuring that all stakeholders are well-informed before any decision-making happens.
Our secret sauce is our honesty and transparency. We share opinions with our clients that are always based on findings and offer recommendations without pushing a definitive course of action. We also take this opportunity to facilitate a conversation on what the likely strategic outcomes would be, if a merger proceeds and if it doesn’t.
Step 4 - From Analysis to Action: This step is all about client collaboration. We share the findings from each workstream with our clients, complete with the level of effort required to overcome differences or budget concerns. Transparency remains the cornerstone when major concerns are discussed, continuously fostering trust and confidence in the process.
Stage 2 - Implementation: The Art of Merging
Once the client has given the green light, the focus shifts to implementing the merger. This starts with the business plan, which details tactical execution activities, implementation costs, and a robust change management process that empowers the key stakeholders to participate in the design of the new organization. The benefit of this artifact is that it can be leveraged to request transitional or permanent funding. The implementation phase also involves sourcing vendors aligned with the client’s organizational goals and establishing metrics for success.
Success metrics are not just confined to the merger itself. Overcoming challenges, fostering relationships between parties, and building a culture of trust across teams are equally significant in this process.
A Successful Merger
Good news— the merger was a success and the two organizations are now operating as one cohesive unit. During the process, each entity faced some challenges; however, these were surmountable due to strong relationships and an alignment on what "success" meant.
It has now been five years since the merger, and the organization is running smoothly. Staff don't spend time talking about how things "used to be." They tackled the COVID-19 pandemic like a champ, making important decisions with ease. So, in a nutshell, they merged, overcame a few challenges, and are now doing great as one team.
Want to work together?
Sense and Nous is a trusted consultant for navigating the intricate world of mergers, creating safe spaces for open dialogue and tackling organizational frictions head-on in a supportive and constructive manner. Through our experience, coupled with project-based know-how, we understand the intricacies of completing projects successfully, from mergers or legal matters to human resources, technology, quality improvement, and strategic management.
If you’d like to learn more about our experiences with mergers and amalgamations, contact us at info@sensenous.ca